Computer glitch

Reasonable excuse for failure to submit a return online

The taxpayer and her husband filed their 2012/13 tax returns on 31 January 2014 and paid the tax shown on the computation. On 18 February the taxpayer received a £100 late filing penalty. She wrote to HMRC explaining that she had submitted her return by the deadline. HMRC replied saying they were treating the letter as an appeal and had not received the return. They added that if the return had been submitted the taxpayer would have received a confirmation email. The matter proceeded to the First-tier Tribunal.

The tribunal found there was no record of the tax return on HMRC’s system and therefore the taxpayer had failed to file on time.

The judge went on to consider whether the taxpayer had a reasonable excuse for the late return. He decided she had. When HMRC told her that...